ACC's net profit slumps 92% as lower volumes and higher costs bite

what happened

According to Moody's, ACC, part of the Adani Group, saw net profit fall 92% year on year in the July–September quarter, to 93 crore rupees. A year earlier it earned 1,119 crore, but that figure included a 671 crore tax write-back. The company attributed the decline to softer sales volumes and higher costs. Results came out during trading hours on Tuesday.

ACC sold 9.7 million tonnes of cement, against 10 million a year before. The Master Supply Agreement with parent Ambuja Cements, under which ACC shipped larger quantities to its parent, also distorted volumes. Consolidated revenue slipped just over 5% to 5,689 crore from 6,005 crore, while total expenses climbed more than 2% to 5,602 crore.

EBITDA more than halved to 401 crore from 846 crore. Operating margin dropped to 7% from 14.1%, and EBITDA per tonne fell to 414 from 849. Shares touched a 52-week low of 1,115 rupees on the BSE, then ended at 1,147.50, down 1.6%. CEO Vinod Bahety argued the figures are not directly comparable because of the MSA, but that underlying momentum remains encouraging.

why it matters

Much of the headline drop reflects a tax write-back booked a year earlier, so the comparison overstates the operational decline. For the sector, volumes, pricing and fuel and energy costs drive margins, and the company itself pointed to elevated fuel and energy costs.

market impact

ACC shares: profit collapse and thinner margins pressure the stock, with the sector watching volumes and costs

• ▼ACC shares pressure down — profit collapse and halved EBITDA weigh on the stock

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